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Exam Number : CPSM1
Exam Name : Foundation of Supply Management
Vendor Name : ISM
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CPSM1 test Format | CPSM1 Course Contents | CPSM1 Course Outline | CPSM1 test Syllabus | CPSM1 test Objectives


This course focuses on management and improvement of supply chain processes and performance. It will be valuable for students who would like to pursue a career in consulting or take a position in operations, marketing or finance functions in a manufacturing or distribution firm. They explore important supply chain metrics, primary tradeoffs in making supply chain decisions, and basic tools for effective and efficient supply chain management, production planning and inventory control, order fulfillment and supply chain coordination. They will also investigate subjects such as global supply chain design, logistics, and outsourcing, several other exact supply chain innovations.
The class format includes lectures, case discussions, guest speakers, and simulation games. The content covers both quantitative and qualitative materials. The cases will feature high-tech companies as well as firms in more traditional industries such as apparel and manufacturing.

Institute for Supply Management (ISM) is the first and leading not-for-profit professional supply management organization worldwide. Its 47,000 members in more than 90 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM Report On Business, its highly-regarded certification and training programs, corporate services, events and the ISM Mastery Model. The ISM Report On Business, Manufacturing and Non-Manufacturing, are two of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders.

CPSM Certification Overview
The CPSM is globally recognized as the gold standard of excellence for supply management professionals, in both the manufacturing and non-manufacturing sectors. The designation is transportable across industries, job roles and regions, providing designation holders with flexibility and mobility. The CPSM is for forward-thinking supply management professionals who desire to demonstrate a broad understanding of the components of the profession. The program emphasizes the major competencies of supply management. Those earning the CPSM will attain a greater understanding of end-to-end supply management and be better positioned to positively impact their organization.

CPSM Eligibility Requirements
Earning a CPSM designation requires you to take and pass three exams, which can be taken in any order:
Supply Management Core
Supply Management Integration
Leadership and Transformation in Supply Management
Candidates must have three years of full-time, professional supply management experience (nonclerical and nonsupport) with a bachelors degree from a regionally accredited institution or international equivalent or five years of full-time, professional supply management experience (nonclerical and nonsupport) without a qualified bachelors degree.
All applicable experience must be in a professional position where the primary function is supply management. Professional experience is usually defined as positions with decision-making authority and where independent judgement is exercised. ISM does not require a candidate to work in all areas of supply management or be in a management position. Proof of work experience is not required from those with a current C.P.M. certification. ISM will evaluate work experience for candidates unsure if their current or previous positions are considered applicable. The evaluation is optional, and there is a nominal charge. The work-experience evaluation process allows a candidate to submit work experience documentation prior to taking exams. ISM will return an evaluation to the candidate indicating if the experience is acceptable. Candidates with acceptable experience should submit the evaluation with their original certification application after they have passed the exams.

- Assess stakeholder needs and organize into sourcing plans 5
- Analyze and advise on feasibility of internal customer requests 3
- Analyze potential sources of products or services 7
- Determine methods to process requirements for goods or services based on cost, 5 timing, existing contracts and competitive bidding, as appropriate
- Conduct analyses to develop insourcing or outsourcing strategy 5
- Identify and implement technologies to support supply management 4
- Leverage spend through the identification, development and execution of 5 sourcing strategies
- Implement strategic sourcing plans aligned with organizational and stakeholder objectives 5
- Prepare solicitations for competitive bids, quotations and proposals with 6 pertinent specifications, terms and conditions
- Evaluate competitive offerings to identify the overall best offer for a product or service 5
CATEGORY MANAGEMENT
- Create a category management plan to meet the organizations key objectives 5
- Execute a category management plan 5
NEGOTIATION
- Prepare negotiation plan that aligns with organizational objectives 5
- Prepare and develop strategies and tactics for negotiations 4
- Lead, conduct and support negotiations with suppliers 5
LEGAL AND CONTRACTUAL
- Manage the preparation of contracts/purchase orders 5
- Award contracts to suppliers 3
- Administer contracts and/or purchase orders from award to completion or termination 5
- Perform or obtain legal review of contracts and other supply management documents 4
- Generate and follow supply management processes to ensure legal compliance 4
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
SUPPLIER RELATIONSHIP MANAGEMENT
- Develop supplier qualification plans to assure components, materials 4 and suppliers meet specified requirements
- Develop and manage effective relationships with suppliers 7
- Conduct supplier performance evaluations 5
- Conduct regular business reviews with suppliers 4
- Identify opportunities and benefits for rationalizing the supply base 4
- Identify opportunities to drive supplier innovation 3
- Develop and implement supplier exit strategies 3
- Review supplier performance against negotiated service level agreements (SLAs) 4
- Resolve invoice and payment problems 2
- Act as a liaison between suppliers and functional areas to ensure accurate 4 information, documentation and product flow
- Work with suppliers to identify constraints and implement value-added processes 3
COST AND PRICE MANAGEMENT
- Develop cost management program strategies for purchases 5
- Perform cost/benefit analyses 4
- Conduct spend analysis to determine strategies for specific categories 5
- Track and validate cost savings and cost avoidance 4
FINANCIAL ANALYSIS
- Prepare and/or administer a supply management department budget 3
- Develop financing strategies for purchases 3
- Verify that sufficient reporting exists 3
TOTAL 180 (including 15 unscored*)
* Included are 15 statistical data research questions which are unscored (not included in your final test score)

Supply Management Integration Exam
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
SUPPLY CHAIN STRATEGY
- Develop and/or implement a material or service standardization program 5
- Implement requirements planning to align supply management activities 7 with organizational strategy
- Implement operations planning, scheduling and inventory control processes 6 to ensure optimum use of resources
- Structure the supply chain in support of the organizations business strategy 7
SALES AND OPERATIONS PLANNING DEMAND PLANNING
- Incorporate the use of sales, inventory and capacity forecasts in the planning 6 of materials production to better meet strategic objectives and goals
- Conduct demand planning 4
SALES AND OPERATIONS PLANNING FORECASTING
- Analyze and report on market conditions, benchmarks and industry 5 trends to internal stakeholders
- Develop supply forecasts in light of economic and technological trends 5
- Plan and communicate sourcing and supply strategies based on forecasted data 6
- Manage forecasted data with suppliers 5
- Calculate and report forecast accuracy 4
SALES AND OPERATIONS PRODUCT AND SERVICE
- Participate in new product or service development in support of marketing efforts 5
- Participate in product-service ramp-up and/or ramp-down strategies and implementation 5
- Create systems and process improvements to help the organization meet sales goals 5
QUALITY MANAGEMENT
- Develop and/or administer a supplier quality certification program 4
- Develop measurements for quality improvement 4
- Implement continuous improvement processes within the supply chain 6
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
LOGISTICS AND MATERIAL MANAGEMENT
- Design transportation and distribution policies and procedures to 4 ensure optimum flow of materials
- Manage transportation, invoicing and documentation functions to 4 ensure regulatory compliance
- Manage the resolution of delivery/receiving problems 4
- Analyze supplier transportation costs 5
- Develop and/or implement a warehouse management system 5
- Conduct network design and optimization to support the business model, 5 increase productivity and lower operating costs
- Oversee the day-to-day operations of a warehousing function 4
- Develop and/or implement an inventory management system 5
- Coordinate and/or monitor the movement of equipment and assets within the organization 3
- Expedite/de-expedite orders 3
- Develop and/or execute plans and metrics to reduce risk of shortages 4
- Identify cost-effective packaging that meets requirements 3
- Conduct investment recovery activities for surplus/obsolete materials 4
PROJECT MANAGEMENT
- Perform project management activities 8
TOTAL 165 (including 15 unscored*)



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ISM of Practice Questions

consultants tip a very good year forward | CPSM1 Questions and Answers and Dumps

There is some optimism for 2022There is some optimism for 2022

by way of Allan Leibowitz

2021 ended on an positive observe, with most specialists tipping continued growth within the materials coping with market.

That positivity has taken a little of a denting in the wake of the fast unfold of the COVID-19 Omicron variant, which has struck manufacturing operations and stretched human resources.

It’s too early to assume the influence of the latest outbreak, but in nice news, the latest document from the Institute for supply administration shows that December deliveries more advantageous from the intense stress level recorded closing November.

ISM indicate that financial exercise within the manufacturing sector grew in December, with the ordinary economic system reaching a nineteenth consecutive month of increase.

Chairman Timothy R. Fiore notes that the us manufacturing sector is still in a demand-driven, deliver chain-constrained ambiance, with signs of advancements in labour components and service provider beginning performance. “Coronavirus pandemic-related international considerations — worker absenteeism, short-term shutdowns due to materials shortages, worker turnover and foreign places provide chain complications — proceed to impact manufacturing,” he says.

however ISM does be aware powerful optimism among its participants. ISM’s Semiannual economic Forecast, launched in December, indicates a robust 2022 performance expectation when it comes to income boom and profitability. 

Tim Waples, CEO of UK cloth handling association, chatting with Forkliftaction news forward of the latest Omicron surge, mentioned that trade demand was expected to live effective this year – however he tipped continuing supply chain disruption “well into (the) 12 months before finally subsiding”.

Waples provides: “With the COP26 summit focusing attention on the need for cleaner, extra sustainable energy, they predict that greener fuel methods will proceed to be a focus all over 2022.

“It has been exciting to peer right through 2021 that greater groups are specifying lithium-ion (Li-ion) batteries for his or her electric counterbalance vans, and they are expecting this trend will proceed. whereas lead acid remains probably the most usual option of battery energy, UKMHA figures show Li-ion has grown to be practically 14% of the electric powered counterbalance market.”

He also anticipates that development of option fuel sources, akin to hydrogen fuel cells, is additionally more likely to proceed “however, while the on-truck know-how is increasingly attainable, we're still a way off from having a commercially plausible hydrogen fuel provide for regularly occurring functions”.

a further vogue he identifies is expanded automation. “we're additionally anticipating the use of inventive technology to continue delivering advances in both productiveness and defense. With labour shortages carrying on with to have an impact on the field, they are able to are expecting gigantic increase with the independent car sector.”

PaxtonPaxton

within the u.s., John Paxton, CEO of MHI, also predicts that pandemic-related disruption, shortages and inflation considerations will proceed into early 2022, “but then begin to normalise throughout the the rest of the yr”.

“We additionally are expecting the labour market will stay tight neatly into 2023,” he says.

MHI is advising its individuals – and the broader substances coping with market – to take competencies of the instructions realized from the pandemic and build resiliency and agility into their operations in coaching to better take up and even thrive amid future disruptions.

“The pandemic accelerated many deliver chain developments and environmental, social, and governance (ESG) is not any distinctive. The drivers of ESG are transferring from risk administration and supply chain efficiency to the chance for monetary discounts and company differentiation with valued clientele, employees and other stakeholders. This will be a big using style going ahead,” he says.

RichardsRichards

Liz Richards, CEO of MHEDA, is also cautiously optimistic: “confidently, most of the challenges surrounding COVID will subside, although it’s nonetheless uncertain (on the time of this writing) what is going to take place with capabilities vaccine mandates. 

“by means of all debts, business is anticipated to be amazing and demand for substances dealing with items and services will proceed to boost,” she notes.

Adam Smith, managing director of AITT, also anticipates “a extra reliable year” in 2022. “but we're organized for the proven fact that there will likely be a endured transport operator scarcity, and there is at all times the opportunity that COVID restrictions might as soon as once again impact the provision of training. however, corporations are a great deal more organized than they have been up to now, and confidently exterior practising will take vicinity with fewer restrictions on web page entry. but employers may wish to accept that the cost of coaching could upward push as a result of excessive demand.” 

Smith’s counsel to the business is to continue to be compliant. “For their members, the final two quarters of 2021 were extraordinarily busy, and this might proceed as they beginning 2022. It may be tempting to focal point on the customer demand all through these times, however working towards suppliers have a responsibility to do their due diligence in regard to their accreditation. AITT offers a wealth of guide to individuals in the form of updated documentation, legislations instructions, digital tests, protection substances and extra, to aid practicing suppliers always convey high requirements of permitted training. as soon as this present demand for practicing classes has passed, it may be an opportunity for working towards providers to cease, take stock, and put together for competencies quiet seasonal durations,” he says.

Ross Moloney, CEO of LEEA, has committed to  assuring excellence and compliance to specifications and legislation in 2022.

“changing perceptions via celebrating the fantastic function the lifting industry already enjoys  is still probably the most dreams of the annual global Lifting cognizance Day (completely happy), which takes area July and is now centered as a vital industry-vast scheme,” he says. “i would encourage participants to take half. while attracting the next technology of sector recruits, comfortable also helps to highlight the ever-existing combat through man, laptop, techniques and tactics to beat gravity and bad apply to obtain a safer trade.”

on the conclusion of closing yr, the foremost industry bodies all had gigantic practising hobbies, conferences and alternate suggests deliberate for 2022. It is still to be considered if the events will take region as envisaged or if some can be postponed or converted to digital activities as restrictions come and go.




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